American Express saw first quarter profits decline 6%, after the number of cardholders failing to pay off their debts increased.
Profits for the three months to 31 March fell to $991m from $1.06bn a year earlier, but beat forecasts.
The firm set aside $1.27bn for credit losses during the period, representing a 48% increase year-on-year.
But while profits fell in the US, the profits overseas rose and the firm expects such growth to continue.
"While we continue to be cautious about the US economy, we are encouraged by our performance internationally," said chief executive Kenneth Chenault.
US card service profits fell 19% to $523m but international profits climbed 30% to $133m.
Shares in the firm added 3% in after hours trading.
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